You always need a good reason to do something, especially when you are thinking about where to invest your hard earned money.
When inflation occurs, the price of goods and services goes up. This means your money is worth less, whereas a precious metal’s worth like gold does not change, it keeps its value. Huge gain potential
Protection against currency variations
In good times or bad times, gold, silver and platinum have retained their value and earned their reputation as a safe investment. A single ounce of gold could have bought you a decent suit in the 1800s; Today, if you sold an ounce of gold, you would have 1200$, which is more than enough to buy a decent suit. The same thing cannot be said with the worth of a dollar in the 1800s; It is said that since 1913, the dollar has lost 98% of its value, times when it was backed by gold, a universal currency. We have many more Bullion Investing Help Articles Now Available.
Supply and demand
Supply and demand is a critical factor that makes precious metals a very attractive investment in the upcoming years. Natural resources can be separated into two segments: finite natural resources and renewable natural resources. Renewable natural resources are things such as coconuts, apples, wood and so on. But here is an example of what can happen with renewable resources.
For example: the news reports ” the orange crop in Spain will be down this season” and the price of orange goes up on the news and you say ”time to make some profits” and you buy orange futures. Then… as you smell the aroma of freshly harvested orange Euros… BAM! The next report says ”Morocco expects record orange harvest this month” and you orange futures nose dive as you say “I knew I should have done bananas instead!”
Finite natural resources refer to resources that are not readily renewable or replaceable. Good examples are oil, natural gas and precious metals.
Now think about the following dynamic: